Oppenheimer: These 3 stocks could gain over 80%
Wall Street’s best companies don’t just look at their stocks, they look at the bigger picture. And Oppenheimer’s chief investment strategist John Stoltzfus is particularly adept at showing us the macro view. In his first note of the new year, Stoltzfus notes a number of factors that will affect the markets. The big news, of course the 800-pound gorilla that can’t be ignored, is the ongoing COVID epidemic. The disease is now making strong comeback as we are well into winter – which was somewhat to be expected given that it is typical behavior for flu-like respiratory viruses. With the rise in winter viruses, we also have to grapple with a new round of lockdown policies that are being imposed by state or local levels. Hopefully the newly available COVID vaccines will dampen the novel coronavirus in the spring. “The length of time we believe households and economies have been negatively impacted by the global spread of the virus will likely be resulting in less resistance to vaccinations for Covid-19 than many experts feared at the start of the pandemic. We’re leaving anticipate stock markets will continue to be sensitive to developments associated with the pandemic that has held the US and the global economy hostage for almost a year. “Stoltzfus said: The second biggest news, but the most likely in Stoltzfus’ view The Georgia elections are making an impression in the marketplace. Both Democratic candidates won seats in the Senate and gave the new Biden administration the opportunity to enforce politics through Congress against any opposition – at least for the next two years. Stoltzfus was concerned about this democratic victory, which ensured short-term one-party control of the presidency and Congress. In his campaign, Joe Biden pledged to take back Trump’s tax policies and take a number of major spending initiatives. If he gets through now, Biden’s stated policies will likely increase both taxes and federal spending. And in Stoltzfus’ view, that will probably cost the markets; Stoltzfus anticipates that the S&P 500 will be vulnerable to losses on the order of 6% to 10% through unrestrained progressive / democratic policies. Before Oppenheimer’s equity analysts rush to sell-off holdings, they remind investors that compelling opportunities still exist. The company’s analysts have flagged three stocks that will see over 80% gains for the coming year. Using TipRanks’ database, we learned that the rest of the street agreed as all three had analyst consensus of “Strong Buy”. miRagen Therapeutics (MGEN) miRagen Therapeutics aims to develop new treatment options for diseases that cannot be adequately alleviated by current therapies. The company’s flagship drug candidate is VRDN-001, an anti-IGF-1R monoclonal antibody in clinical research for the treatment of thyroid eye disease (TED). After acquiring Veridian Therapeutics in October, miRagen acquired the rights to VRDN-001 late last year. The monoclonal antibody is about to enter the clinical phase 2 study. First results are expected in mid-2021. MiRagen is funding its current research with a $ 91 million capital increase under a private placement funding agreement. With this agreement, miRagen ended the third quarter with $ 144 million in cash. More importantly, however, the cash runway extends through 2023. Among the bulls is Oppenheimer analyst Leland Gershell, who rates MGEN as an outperform (ie buy). along with a price target of $ 37. That number gives room for 102% annual growth. (To see Gershell’s track record, click here.) Gershell confirms his stance: “The recent acquisition of Viridian and the $ 91 million increase have put miRagen on a new course as the incoming programs enable it to The fertile thyroid eye disease market has ample sales potential for competing [VRDN-001]and its higher potency may allow for differentiation … We anticipate advances in developing MGEN’s TED candidates will support outperformance. “Overall, Wall Street likes the risk / reward factor at play here, as TipRanks has a strong buying consensus based on MGEN’s success. The shares sell for $ 18.26 with an average price target of $ 32. This target implies an upward movement of 75% from the current level. (See MGEN stock analysis on TipRanks) Oric Pharmaceuticals (ORIC) The success of the pharmacological industry, ironically, has created a major challenge: Many diseases are becoming resistant to existing therapies. Many types of cancer are among the diseases that are exposed to resistance and the resulting relapses. These are serious problems that both affect the patient’s quality of life and increase the death rate. Oric Pharmaceuticals, a clinical biopharma research company, is working on treatments to overcome cancer resistance. Oric’s lead candidate is ORIC-101, which shows promise as a glucocorticoid receptor (GR) antagonist. The drug is entering two separate Phase 1b studies, one for prostate cancer and one for solid tumors. Modern drug discovery is expensive, and Oric recently raised capital through a successful public offering of shares. The company launched over 5.79 million new shares at $ 23 each back in November and had sales of over $ 133.3 million. 5-star Oppenheimer analyst Kevin DeGeeter covers Oric and is bullish. DeGeeter supports its outperform (i.e. buy) rating with a price target of $ 62, implying an upside potential of 88% for a year. (To see DeGeeter’s track record, click here.) In support of his optimistic stance, DeGeeter writes, “We view ORIC as an investment in a leadership team that has successfully developed clinically important cancer drugs. Our work assumes that… clinical data support the industry’s best profile of ORIC-101, based on either ease of use or superior efficacy in a biomarker selected population. We believe that current investor expectations place significant value on ORIC-101’s potential best-in-class profile and management skills. “Overall, ORIC shares received a unanimous thumbs up from the analyst consensus, with 3 current buy ratings leading to a strong buy rating. The stock is trading at $ 32.91 while the average target price of $ 50.67 indicates room for ~ 54% growth. (See ORIC stock analysis on TipRanks) Triterras (TRIT) Next up is a Unicorn, a billion dollar fintech startup that has been in the public markets for less than three months. With Kratos, Triterras offers an online trade and trade finance platform based on blockchain technology. Trade finance, or the provision of credit services for the physical transportation of market goods, is valued at $ 40 billion annually. Triterras’ platform uses the security of the blockchain as a selling point for online retailers. Triterras went public through a SPAC merger. that is, a business combination with a specific acquisition company. These companies exist to buy a target company, inject capital, and then bring the combined company into the public markets. Analyst Owen Lau, who covers this stock for Oppenheimer, likes what he sees. Commenting on the company’s current status, he writes: “… results and momentum appear strong and the full year forecast implies sales and net income growth of 235% and 142% year over year on a low basis. While the company is growing faster than other high-growth marketplaces, the stock trades at a discount, on average, to low-growth marketplaces. Bottom line, Lau is optimistic, saying, “We’re seeing an intriguing paper-to-electronics ratio opportunity in Triterras that is leveraging blockchain technology to disrupt low-tech adoption in the trade and trade finance industries. “Consistent with these comments, Lau is outperforming TRIT shares (ie buying) and his target price of $ 23 implies 93% growth for the coming year. (To see Lau’s track record, click here.) In total, this company has registered 3 recent reviews, all for buy, making the consensus of Strong Buy analysts unanimously positive. The stock is priced at $ 10.94 with an average target price of $ 19, giving the stock ~ 60% upside potential for a year. (See TRIT Stock Analysis at TipRanks.) To find great ideas for trading stocks at attractive valuations, visit TipRanks ‘Best Stocks to Buy, a newly launched tool that brings together all of TipRanks’ stock insights. Disclaimer: The opinions expressed in this article are solely those of the presented analysts. The content is intended to be used for informational purposes only. It is very important that you do your own analysis before making any investment.